Mahindra CIE Rally 8% After 73% YoY Growth in Quarter Results

Mahindra CIE Automotive climbed 8% to Rs 387.55 after the company disclosed a 73% increase in net profit.

Mahindra CIE Automotive climbed 8% to Rs 387.55, compared to a 3.2% loss in the Nifty 500 index, after the company disclosed a 73% increase in consolidated net profit to Rs 279.1 crore in Q4FY23 from Rs 161.4 crore in Q4FY22, owing to robust domestic and European demand.

In the fourth quarter, revenue from operations climbed by 18% year on year to Rs 2,440.2 crore. Total costs increased by 17% to Rs 2,166 crore compared to the previous year. This was mainly due to increased raw material prices (up 11% YoY), higher labour expenditures (up 17% YoY), higher financing costs (up 6x YoY), and higher other expenses (up 14% YoY).

EBITDA increased 36% in Q1CY23 to Rs 396.6 crore from Rs 291.2 crore in Q1 CY2022. In Q1CY23, the EBITDA margin was 17.1%, up from 14.9% in Q1CY22. Profit before tax from ongoing activities was Rs 290.4 crore in Q1CY23, up 35% from Rs 215.9 crore in Q1CY22. Mahindra CIE earned a net profit of Rs 58.9 crore from ceased activities during the period under review.

According to the corporation, its overall favourable performance was bolstered by growth, excellent profitability in India, and sales and margin recovery in Europe.

Mahindra CIE Automobile is a supplier of multi-technology automobile components. It is a subsidiary of the CIE Automotive Company of Spain, an industrial corporation specialising in selling automotive parts and sub-assemblies with a global presence.

Meanwhile, Mahindra & Mahindra sold over a 6% investment in Mahindra CIE Automotive last month, reducing its holding to 3.19% from 9.25%.

At 3:20 pm, the stock was trading 7.67% higher at Rs 386.25 per share, up from its previous day’s closing price of Rs 358.6. The stock has increased by 72.78% in the last year. It has also provided investors with multi-bagger gains, with the stock rising roughly 383% in the previous three years.

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